Okay. Futures Contracts are promises of delivery for goods at a certain time. Speculators buy and sell these contracts up until the contract's expiration, based on expectation on whether the goods will go up, or down, hence the term, "speculation." Also, there's more day trading over futures, than for stocks.
I understand that, and little else. Forgive my dumb questions, but I have some inquiries about futures that may seem absurdly stupid, but I'm trying still to figure things out.
Namely, if the speculator hangs on to the contract too long, he'll own not the contract, but the commodity, yes? Then again, he can still sell that, yes? Still, what the speculator does is speculate before the contract's expiration, yes?
I understand that, and little else. Forgive my dumb questions, but I have some inquiries about futures that may seem absurdly stupid, but I'm trying still to figure things out.
Namely, if the speculator hangs on to the contract too long, he'll own not the contract, but the commodity, yes? Then again, he can still sell that, yes? Still, what the speculator does is speculate before the contract's expiration, yes?